A top Greek economic official sought to shore up confidence among investors that Greece would avert a crippling debt default by securing billions of dollars in emergency loans from European countries and the International Monetary Fund.
Greek Finance Minister George Papaconstantinou also warned market speculators "they will lose their shirts" by betting against Greece.
Papaconstantinou said in his Washington news conference on Sunday that he had no doubt that at the end of intensive negotiations that are continuing Monday in Athens and over the next two weeks, Greece will win the loan support it needs from both the European countries and the IMF.
"We are all confident that this will be done in time and we will continue to be able to finance Greek public debt without absolutely any problem," Papaconstantinou told reporters.
Papaconstantinou said he expected the IMF board would approve its portion of the loan support within the first 10 days of May and that approval would be in time to meet a payment of $11.3 billion on Greek bonds due on May 19.
He said that he expected the support from the IMF and the European governments to be provided at the same time but he said if some European parliaments were delayed in approving their contributions, the IMF support could be used to obtain bridge financing from other sources.
Greece is hoping to obtain emergency loans of about $40 billion from the group of 16 European countries that, like Greece, use the euro as a common currency, and an additional $13.4 billion from the IMF.
The Greek government has already agreed to put in place painful austerity measures to trim government spending and public pensions, but it was likely that the IMF and the euro-zone governments will require even tougher measures in return for assistance.
The IMF's managing director, Dominique Strauss-Kahn, expressed similar optimism, saying the IMF and European government recognized the "need for speed" because of Greece's escalating problems and the adverse impact it was having on financial markets around the world.
"We are all aware of the seriousness of the situation and the courageous efforts being made by the Greek people," Strauss-Kahn said in a statement.
Greece's debt crisis weighed heavily on financial leaders as they wrapped up a series of financial meetings that began Friday with discussions among the Group of 20 major economic nations, including wealthy industrial countries and rising economic powers such as China, India, Brazil and South Korea.
In response to the global economic crisis that struck in 2008, the G-20 has been designated the key forum for economic coordination among countries, taking over a role that had been performed for three decades by the Group of Seven richest countries.
In response to the rising clout of such nations as China, the World Bank on Sunday approved a realignment of its voting shares, which boosted China into the No. 3 spot behind the United States and Japan. The change put China ahead of traditional economic powers Germany, France and Britain in a dramatic sign of China's new status as the world's third largest economy. The change also increased the voting power of developing nations from 44 percent of total votes to 47 percent.
Monday, April 26, 2010
Tuesday, March 30, 2010
Friday, March 19, 2010
South China's industrial heartland of Guangdong to raise minimum wage by average of 21% to range of $96 to $150 a month
The minimum wage in South China's industrial heartland Guangdong Province, is to be raised by 21 per cent on average to a range from RMB 660 renminbi to 1,030 ($96 to $ 150) a month from May 1st in a bid to attract migrant workers, local authorities said Thursday.
Guangdong, north of Hong Kong, in the Pearl River delta region, which is responsible for a third of China’s exports and would rank as one of the world’s 10 largest exporters if it were a country, is finding it harder to attract migrant labour as other regions develop. So on Thursday, it was announced by the Guangdong Provincial Human Resources and Social Security Department that the minimum wage of both full-time and part-time workers will be raised.
The adjusted minimum wage is divided into five categories ranging from RMB660 to 1,030 yuan/renminbi ($96 to $ 150) a month, depending on the financial situation in different cities in the province. The move came a month after the country's second biggest exporter, Jiangsu Province, raised its minimum wage by about 12 per cent to 960 yuan ($140.64) from the current 850 yuan ($124). East China's Fujian Province increased its minimum wage by 24.5 per cent from March 1st. China is making huge investments in its rail network and last December, it launched the world’s fastest passenger train service between Guangzhou, Guangdong's provincial capital, and the central city of Wuhan, covering 1,100km in just three hours. The railway investment will result in more balanced regional development.
"A 20 per cent raise is a big jump because many other provinces offer around 10 per cent. That's because Guangdong wants to stand out from among other competitors," Lü Xuejing, professor of social security at Capital University of Economic Business, told the Global Times Thursday.
"However, I don't think the adjustment is attractive enough as it doesn't make much of a difference to work as a farmer at home or as a migrant worker far from home in Guangdong," she said.
She explained that the higher minimum wage might attract some older migrant workers but won't appeal to skilled workers who are less willing to do manual work.
According to the Beijing Times, Beijing will raise its monthly minimum wage levels by 10 per cent from the current RMB 800 ($117.2) possibly next month.
Wage pressure is coinciding with pressure on China to raise the value of its currency.
"It is unfair and harmful to continuously depreciate a country's own currency and ask other countries to revalue their currencies in the meantime," Foreign Ministry spokesman Qin Gang said at a regular press conference on Thursday in Beijing.
The China Business News news service reported Friday that the Ministry of Commerce and the Ministry of Industry and Information Technology are expected to disclose the results of a study on the effects of yuan exchange-rate appreciation on exporters by April 27th..
Zhang Wei, deputy director of the China Chamber of International Commerce, is quoted as saying the Ministry of Commerce's yuan stress test involves over 1,000 companies in 12 industries.
Zhang Wei, vice chairman of the China Council for the Promotion of International Trade, said at a press briefing in Beijing on Thursday that exporters in labour-intensive sectors such as garments and furniture worked on margins as low as 3 per cent, he said. "If the yuan rises, these companies will face the immediate risk of going bust as their profit margin is already very narrow," Zhang told reporters. "So for these companies, the consequences would be disastrous."
Guangdong, north of Hong Kong, in the Pearl River delta region, which is responsible for a third of China’s exports and would rank as one of the world’s 10 largest exporters if it were a country, is finding it harder to attract migrant labour as other regions develop. So on Thursday, it was announced by the Guangdong Provincial Human Resources and Social Security Department that the minimum wage of both full-time and part-time workers will be raised.
The adjusted minimum wage is divided into five categories ranging from RMB660 to 1,030 yuan/renminbi ($96 to $ 150) a month, depending on the financial situation in different cities in the province. The move came a month after the country's second biggest exporter, Jiangsu Province, raised its minimum wage by about 12 per cent to 960 yuan ($140.64) from the current 850 yuan ($124). East China's Fujian Province increased its minimum wage by 24.5 per cent from March 1st. China is making huge investments in its rail network and last December, it launched the world’s fastest passenger train service between Guangzhou, Guangdong's provincial capital, and the central city of Wuhan, covering 1,100km in just three hours. The railway investment will result in more balanced regional development.
"A 20 per cent raise is a big jump because many other provinces offer around 10 per cent. That's because Guangdong wants to stand out from among other competitors," Lü Xuejing, professor of social security at Capital University of Economic Business, told the Global Times Thursday.
"However, I don't think the adjustment is attractive enough as it doesn't make much of a difference to work as a farmer at home or as a migrant worker far from home in Guangdong," she said.
She explained that the higher minimum wage might attract some older migrant workers but won't appeal to skilled workers who are less willing to do manual work.
According to the Beijing Times, Beijing will raise its monthly minimum wage levels by 10 per cent from the current RMB 800 ($117.2) possibly next month.
Wage pressure is coinciding with pressure on China to raise the value of its currency.
"It is unfair and harmful to continuously depreciate a country's own currency and ask other countries to revalue their currencies in the meantime," Foreign Ministry spokesman Qin Gang said at a regular press conference on Thursday in Beijing.
The China Business News news service reported Friday that the Ministry of Commerce and the Ministry of Industry and Information Technology are expected to disclose the results of a study on the effects of yuan exchange-rate appreciation on exporters by April 27th..
Zhang Wei, deputy director of the China Chamber of International Commerce, is quoted as saying the Ministry of Commerce's yuan stress test involves over 1,000 companies in 12 industries.
Zhang Wei, vice chairman of the China Council for the Promotion of International Trade, said at a press briefing in Beijing on Thursday that exporters in labour-intensive sectors such as garments and furniture worked on margins as low as 3 per cent, he said. "If the yuan rises, these companies will face the immediate risk of going bust as their profit margin is already very narrow," Zhang told reporters. "So for these companies, the consequences would be disastrous."
Thursday, March 11, 2010
Six Ways to a Successful Savings Plan
You've found a job, started a family and are living comfortably from month to month. What's next? If saving money comes to mind, you're on the right track.
"Time is of the essence," says Certified Financial Planner Ted Snow, founding principal of Snow Financial Group in Addison, Texas. "The earlier you start, the less you'll have to take out of your pocket to save, and the more opportunities you'll have in terms of compounding and doubling your money."
Ready to get started? Follow these six strategies to incorporate long-term savings into your budget.
Know what you wantThe most critical part of a long-term savings plan is to understand what you're truly saving for, says Certified Financial Planner Jude Boudreaux, director of financial planning at Bellingrath Wealth Management in New Orleans.
Do you want to buy a beach home in Florida? Send your offspring to college? Save for a sumptuous retirement?
"The clearer the picture of the long-term goal, the easier it is to make daily decisions that truly affect your success," he says.
Get into the right mindsetOnce you know what you want, it's time to set aside money for it. But shifting funds into a long-term account can be tough, especially if it means investing money you regularly spend at the coffee shop, drugstore or restaurants.
RELATED LINKS
Current DateTime: 01:13:37 11 Mar 2010
LinksList Documentid: 35650092
Tracking Down Your Tax ReformHolistic Financial PlanningSix Tax Errors and How to Avoid Them
If setting aside money normally spent on entertainment leaves you feeling deprived, try changing your attitude.
"By saying 'no' right now, you're giving yourself a 'yes' toward something bigger and better in the future," says Boudreaux.
An attitudinal adjustment may be more easily achieved for short-term goals. Case in point: Say you want to take a trip every year that will cost $5,000. Put aside $100 a week and you can make the trip a reality. This might mean eating at a restaurant one or two fewer times a week. By saying "no" to eating out, however, you're saying "yes" to a big annual trip. See the difference?
The same mindset goes for your long-term goals.
Use Bankrate's simple savings calculator to see your savings grow.
Mortgages
30 yr fixed 5.00% 5.13%
30 yr fixed jumbo 5.82% 5.92%
15 yr fixed 4.35% 4.64%
15 yr fixed jumbo 5.36% 5.53%
5/1 ARM 3.87% 3.49%
5/1 jumbo ARM 4.47% 3.70%
Find personalized rates:
Bankrate.com
Understand the power of compound interestSetting aside money early on and watching it grow can be a powerful motivator.
To envision the potential of compound interest, consider the rule of 72, suggests Snow. Take the number 72 and divide it by the projected rate of return you expect to receive each year from an investment. This will reveal the estimated number of years it will take for that amount of money to double.
For example, say you invest $8,000 in a mutual fund with an average return rate of 8 percent. It will take approximately 9 years (72 divided by 8) for that amount to turn into $16,000. The earlier you start, the more time your investments have to multiply.
"Time is of the essence," says Certified Financial Planner Ted Snow, founding principal of Snow Financial Group in Addison, Texas. "The earlier you start, the less you'll have to take out of your pocket to save, and the more opportunities you'll have in terms of compounding and doubling your money."
Ready to get started? Follow these six strategies to incorporate long-term savings into your budget.
Know what you wantThe most critical part of a long-term savings plan is to understand what you're truly saving for, says Certified Financial Planner Jude Boudreaux, director of financial planning at Bellingrath Wealth Management in New Orleans.
Do you want to buy a beach home in Florida? Send your offspring to college? Save for a sumptuous retirement?
"The clearer the picture of the long-term goal, the easier it is to make daily decisions that truly affect your success," he says.
Get into the right mindsetOnce you know what you want, it's time to set aside money for it. But shifting funds into a long-term account can be tough, especially if it means investing money you regularly spend at the coffee shop, drugstore or restaurants.
RELATED LINKS
Current DateTime: 01:13:37 11 Mar 2010
LinksList Documentid: 35650092
Tracking Down Your Tax ReformHolistic Financial PlanningSix Tax Errors and How to Avoid Them
If setting aside money normally spent on entertainment leaves you feeling deprived, try changing your attitude.
"By saying 'no' right now, you're giving yourself a 'yes' toward something bigger and better in the future," says Boudreaux.
An attitudinal adjustment may be more easily achieved for short-term goals. Case in point: Say you want to take a trip every year that will cost $5,000. Put aside $100 a week and you can make the trip a reality. This might mean eating at a restaurant one or two fewer times a week. By saying "no" to eating out, however, you're saying "yes" to a big annual trip. See the difference?
The same mindset goes for your long-term goals.
Use Bankrate's simple savings calculator to see your savings grow.
Mortgages
30 yr fixed 5.00% 5.13%
30 yr fixed jumbo 5.82% 5.92%
15 yr fixed 4.35% 4.64%
15 yr fixed jumbo 5.36% 5.53%
5/1 ARM 3.87% 3.49%
5/1 jumbo ARM 4.47% 3.70%
Find personalized rates:
Bankrate.com
Understand the power of compound interestSetting aside money early on and watching it grow can be a powerful motivator.
To envision the potential of compound interest, consider the rule of 72, suggests Snow. Take the number 72 and divide it by the projected rate of return you expect to receive each year from an investment. This will reveal the estimated number of years it will take for that amount of money to double.
For example, say you invest $8,000 in a mutual fund with an average return rate of 8 percent. It will take approximately 9 years (72 divided by 8) for that amount to turn into $16,000. The earlier you start, the more time your investments have to multiply.
Wednesday, January 13, 2010
Renters' market: Prices fall 3%, vacancies up 8%
NEW YORK (CNNMoney.com) -- There haven't been this many vacant rental apartments for at least 30 years, according to a new industry report.
The national apartment vacancy rate rose to 8% in the last three months of 2009, according to Reis Inc., a commercial real estate information provider. That is the highest level Reis has ever reported.
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The vacancy rate barely inched up from the third quarter -- just 7.9% to 8% -- but it rose significantly from a year ago, when it stood at 6.7%. Even more dramatic, vacancies spiked 45% from the third quarter of 2006, when they had bottomed out at 5.5%.
The main culprit is, of course, the recession, according to Reis economist Ryan Severino. Not only do people lose their jobs during downturns, many others are afraid of being laid off. And they all feel pressure to reduce their housing costs.
"Household formation rates slow down during recessions," said Severino. "They may move in with their families or rent larger apartments and partner up with friends. They partner with others much more then they do during more prosperous times."
And that, of course, frees up many rental units.
Vacancies up, rents down
All those extra apartments gave renters more negotiating room with landlords. The national average effective rent -- what landlords actually charge, not what they ask for -- fell 3% from the end of 2008 and 0.7% from the previous quarter.
Occupancy rates did climb during the quarter, with nearly 10,000 more apartments being rented than had been three months earlier, according to the report. But vacancy rates still managed to climb because 28,000 newly constructed units hit the market. A total of 120,000 new apartments came online during 2009, the most since 2003.
It's unclear why so many units were added during a time of deep economic turmoil, but some of the big rental buildings were undoubtedly planned and under development before the recession hit, according to Severino. And it would have made no economic sense to withhold them from the market. Some rent is better than no rent.
Other apartments, however, could have been planned as condominium developments and only converted to rentals after the condo market crashed. These homes are what economists like to call fungible, easily converted from one commodity into another.
The number of rental units that started out as condos is "very hard to pin down," said Severino, but there were undoubtedly some, especially in really hard hit condo markets such as southern Florida.
The national apartment vacancy rate rose to 8% in the last three months of 2009, according to Reis Inc., a commercial real estate information provider. That is the highest level Reis has ever reported.
Facebook Digg Twitter Buzz Up! Email Print Comment on this story
The vacancy rate barely inched up from the third quarter -- just 7.9% to 8% -- but it rose significantly from a year ago, when it stood at 6.7%. Even more dramatic, vacancies spiked 45% from the third quarter of 2006, when they had bottomed out at 5.5%.
The main culprit is, of course, the recession, according to Reis economist Ryan Severino. Not only do people lose their jobs during downturns, many others are afraid of being laid off. And they all feel pressure to reduce their housing costs.
"Household formation rates slow down during recessions," said Severino. "They may move in with their families or rent larger apartments and partner up with friends. They partner with others much more then they do during more prosperous times."
And that, of course, frees up many rental units.
Vacancies up, rents down
All those extra apartments gave renters more negotiating room with landlords. The national average effective rent -- what landlords actually charge, not what they ask for -- fell 3% from the end of 2008 and 0.7% from the previous quarter.
Occupancy rates did climb during the quarter, with nearly 10,000 more apartments being rented than had been three months earlier, according to the report. But vacancy rates still managed to climb because 28,000 newly constructed units hit the market. A total of 120,000 new apartments came online during 2009, the most since 2003.
It's unclear why so many units were added during a time of deep economic turmoil, but some of the big rental buildings were undoubtedly planned and under development before the recession hit, according to Severino. And it would have made no economic sense to withhold them from the market. Some rent is better than no rent.
Other apartments, however, could have been planned as condominium developments and only converted to rentals after the condo market crashed. These homes are what economists like to call fungible, easily converted from one commodity into another.
The number of rental units that started out as condos is "very hard to pin down," said Severino, but there were undoubtedly some, especially in really hard hit condo markets such as southern Florida.
Monday, November 30, 2009
Less smoking helps push cancer deaths down in Europe
Cancer killed fewer Europeans in the first half of this decade, largely thanks to a decrease in smoking. A new study finds that while death rates from cancer varied between men and women and among countries, they generally improved in all major European nations.
The study, published Monday in the Annals of Oncology, found that in the 27 European Union countries, overall cancer mortality declined 9% in men and 8% in women in the period 2000-2004 compared with 1990-1994. That translates to the cancer death rate falling from 185.2 deaths per 100,000 men to 168, and from 104.8 to 96.9 for women. Middle-age people showed the largest drop.
The study, published Monday in the Annals of Oncology, found that in the 27 European Union countries, overall cancer mortality declined 9% in men and 8% in women in the period 2000-2004 compared with 1990-1994. That translates to the cancer death rate falling from 185.2 deaths per 100,000 men to 168, and from 104.8 to 96.9 for women. Middle-age people showed the largest drop.
Monday, November 23, 2009
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